| Larger companies (100 or more employees) that want full-service bundled 401k plan. |
|
| Smaller companies (less than 100 employees) that want 401k plan flexibility |
- Affordable, easy to set up
- May be primarily employee funded
- Pretax contribution advantages
- May include employer contributions or matching contributions, subject to vesting schedules
- Flexible plan design, including loans
- Wide range of investment options
|
| Companies that want to provide guaranteed pension benefit |
- Flexible range of plan design options
- Employer funded, based on actuarial calculations
- Bundled services, including plan consulting, actuarial and compliance services
- Expert investment management and institutional options
- Employee information, retirement modeling and communication support
|
| Organizations of any size that want to provide supplemental retirement benefits to key highly compensated employees |
- Contributions and benefits are not restricted by the IRS qualification limits
- Broad investment and funding choices
- Flexible plan design and consulting to meet strategic objectives
|
| Companies of any size that want the flexibility to change contributions annually and to focus employees on profits |
- Employer funded, with choice of formulas, up to certain limits per employee
- Deductible up to 25% of payroll
- Flexibility in plan design includes vesting schedules
- Broad choice of investment options, including major fund families, company stock, and self-managed accounts
|
| Companies that want to commit to the same percentage contribution each year |
- Employer funded, at a fixed contribution rate, up to certain limits per employee
- Deductible up to 25% of payroll
- May allow for loans and vesting schedules
|
| Unions that want to provide retirement benefits to members |
- Employers contribute according to collective bargaining agreements
- Investments may be directed by trustees or individual participants
- Wide variety of investment options
- Employee communication and education support, similar to 401k plans
|
| Not-for-profit and government entities respectively, that want to provide retirement benefits through employee salary deferral |
- Primarily employee funded, up to annual limits
- Pretax contribution advantages
- Employer may make matching or discretionary contributions
- Flexible plan design, vesting schedules
- Wide variety of investment options
- Employee communications and education support, similar to 401k plans
|
| Companies that want to provide shares of company stock to participating employees' retirement plans |
- May be a stand-alone plan or incorporated into a 401k or other defined benefit plan
- Provides a vehicle for employee incentive and corporate finance
- Company can borrow to finance the stock purchase
- May provide special tax advantages to company and employees
|
